The Swedish Riksbank’s work on analyzing the potential need and consequences of issuing a Central Bank Issued Digital Currency (CBDC), the e-krona, has attracted significant international attention. Many central banks around the world are also investigating CBDCs, but the low and rapidly declining use of cash in Sweden has made the question more acute.
For Sweden, a CBDC has not been a thought experiment, but rather a policy alternative that is being seriously considered. During 2019 the e-krona project has moved into a new phase. An experimental prototype is being developed, and a public inquiry has been proposed by the Swedish Parliament (the Riksdag) that will analyze and draft a further proposal for the role of the state in the future Swedish payments system. The proposed inquiry has a broad focus, but will include looking into the potential need to issue an e-krona.
This article summarizes the e-krona project thus far and the process ahead. Read more in the CBPN Members’ Library with your annual subscription
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